ABBOTT PARK, Ill., Aug. 16, 2011 /PRNewswire/ -- Abbott (NYSE: ABT) announced today that it will invest $230 million (USD) to build a state-of-the-art nutrition manufacturing facility in Jiaxing, China. The facility represents Abbott's largest investment in China to date and will manufacture premium powdered milk products for Chinese infants and children.
More than 17 million infants are born each year in China and rising incomes and a growing middle class have created increased demand for high-quality nutrition products. To meet the needs of this dynamic market, Abbott anticipates launching a number of new product innovations over the next three years across the pediatric nutrition category in China.
"This facility will play a key role in providing science-based, innovative nutritional products to infants and children while helping to build a healthier future for China," said John Landgraf, executive vice president, Nutritional Products, Abbott. "Building a strong local manufacturing base will position us to better provide Chinese parents the same high quality products they rely on today, even faster."
Products made at the new Abbott manufacturing facility in China will contain the same quality ingredients and undergo the same testing standards as Abbott products made at the company's other facilities around the world. The plant, when operational in 2013, will employ approximately 300 people.
With the addition of the new facility in Jiaxing, Abbott will have opened six manufacturing and R&D facilities in its nutrition and pharmaceuticals businesses in the Asia-Pacific region during the past three years, including three in China.
China represents the largest single market growth opportunity in global nutrition. Abbott expects to increase its nutrition revenues in China to more than $1 billion (USD) by the end of 2014. China also continues to be an important part of Abbott's emerging markets strategy. In the first half of the year, more than 26 percent of Abbott's global sales were in emerging markets and nearly 42 percent of Abbott Nutrition's global sales were in emerging markets.
When completed, the plant will become Abbott's first fully integrated spray drying, blending and packaging facility in China. The company's new facility will be located in the Jiaxing Economic and Technological Development Zone, which is located mid-way between Shanghai and Hangzhou.
Abbott's Commitment in China
Abbott has been operating in China for nearly 20 years and currently has more than 3,000 employees in the country. Abbott is one of the leading companies in China in the area of social responsibility. The company has been named to the top 100 ranking by both The China Corporate Social Responsibility List and the Southern Weekly List for its outstanding corporate citizenship work and for its long-term commitment to philanthropy. Abbott led the way in several categories including environmental management and climate strategy, business practices, supplier standards and innovative philanthropy.
About Abbott Nutrition
For more than 85 years, Abbott Nutrition has been developing and marketing science-based nutritional products to support the growth, health and wellness of people of all ages. Internationally recognized brands include the Similac® brand of infant formulas; the Gain® brand of growing-up milks; the PediaSure® line of nutritionals for children; and the Ensure® brand of complete and balanced nutrition for adults.
The company is a leader in nutritional products clinically shown to address the distinct dietary needs of people with serious health conditions or special nutrient requirements, such as the Glucerna® brand of nutrition shakes, bars and cereal for people with diabetes. Abbott Nutrition also offers EAS® specialized products to meet the unique nutritional needs of athletes, as well as ZonePerfect® all-natural nutrition bars for busy, active lifestyles.
Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs nearly 90,000 people and markets its products in more than 130 countries.
Abbott's news releases and other information are available on the company's Web site at www.abbott.com.